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Question By
edgarhx

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Is it bad to have balance on each credit card? Even if it's only a small amount?
I received a credit report saying "too many accounts with balance". I wonder if I should only leave small balance on one or two credit accounts, instead of having each account with balance. (Because I heard that not using some credit cards for a long time would be bad and the bank may close the account)

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Carrying over a balance on credit cards means you will be paying interest on that amount instead of possibly saving money by buying something at a reduced price and paying it in full when the statement comes in.  While some cards may close the account for inactivity after a year or so (depends on the company policy) there is a way to keep the cards active with minimal effort.  Just have something you regularly pay every month by check (electric bill, phone bill, insurance,etc) paid by a credit card and, when the bill comes in, pay it in full like you were doing before but this time the payment goes to the credit card company.  It keeps the card active, you don't pay interest and your usage will be low.   

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